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Importance of the Concept Effect of Indirect Taxes on Industries-
It is a really useful and crucial topic for accounts and finance students. Students should try to analyze the topic in depth so that they can get full clarity. Effect of Indirect Taxes on Industries Assignment Help will sharpen your knowledge related to the topic. Let us understand the importance of this topic-
- Indirect taxes are those which are levied on the goods and services.
- Thus these taxes are included in the final price of goods and services and ultimately the burden of such taxes passes to the consumers who use such products and services.
- The industries also face the impact of indirect taxes because if the government changes the rates for indirect taxes then ultimate effect is seen on the consumption pattern of people.
- If the indirect tax rate has been increased then the products and services will become costly and people will buy less, so it will be will be bad for the industries as their production and profitability will decrease.
- If the indirect tax rate decreases then the products and services will become cheaper and the people will purchase more and the industries will get benefits due to greater production and more profits.
- Thus indirect taxes have a major impact on the industries, because it can alter the demand for products and services.
- Indirect taxes are an important source of revenue for the government and it is decided after comprehensive evaluation because it will have an impact on the entire economy.
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